According to a study by Oxford Economics in partnership with Towers Watson and the Center for Effective Organizations at the University of Southern California, businesses are experiencing a current market shift that will affect the supply and demand for talent for at least the next ten years. This shift is caused largely by emerging economies that are increasing the supply of talent and as education has a difficult time in keeping up with technology.
The study showed that the different in supply and demand between markets will alter the global workplace for the next decade. As time passes, mature markets are expected to experience labor shortages as required skills become ever more complex while more and more skilled talent will emerge from developing locations such as Brazil and India.
“The dynamic changes in global economics and ever-evolving technology necessitate that companies rethink how they address their shifting talent needs. Some of these changes run counter to what most companies have been experiencing in various markets,” said Ravin Jesuthasan, global practice leader for talent management at Towers Watson. “These new realities make it incumbent on HR executives to consider new and creative ways to access talent across the globe.”
Survey respondents reported that the most dramatic increases in employment demand will be focused in Asia where the number of new employees will rise by 22.2 percent. Above-average growth will also be found in other emerging markets such as Latin America (13.4 percent), the Middle East (13.2 percent), and Africa (13.2 percent). This contrasts with increases in the Western world where Western Europe is expected to grow by 3.5 percent and North America is projected to expand by 6.1 percent over the next three years.
“Our study underscores the need for executives to prepare for the major realignment of the global workforce, which is already under way,” said Lou Celi, President of Oxford Economics America. “These changes in the talent landscape, brought on by rapid technology adoption, continued globalization, shifting demographics and increasing competition, are significant — and permanent.”